Trump Extends Jones Act Waiver for 90 Days

10.08.2026 · By Bernal Fintech Markets Desk

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President Donald Trump has extended for 90 days a waiver allowing foreign-flagged ships to transport oil and other commodities between U.S. ports, but imposed new limits after shipbuilders and their allies in Congress argued the policy was undermining the domestic maritime industry, the White House said. This move comes as the Iran war disrupts global oil markets and as U.S. midterm elections approach.

The Jones Act, formally known as the Merchant Marine Act of 1935, requires that all goods transported between U.S. ports be carried on ships built in the U.S., owned by U.S. citizens, and crewed by U.S. citizens. The waiver, first introduced in 2017, has been a point of contention between the Trump administration and the U.S. maritime industry, which has lobbied for stricter enforcement of the law.

Context and Implications

The extension of the waiver reflects a balancing act between maintaining the flow of oil and other commodities in the U.S. and protecting the domestic maritime industry. The Trump administration has narrowed the scope of the waiver to address concerns from shipbuilders and their allies in Congress, who argue that the policy is undermining the U.S. shipbuilding sector. The waiver allows foreign ships to transport goods between U.S. ports, which has been a contentious issue in the energy and shipping sectors.

The decision to extend the waiver comes amid ongoing tensions with Iran, which have disrupted global oil markets and increased the demand for alternative shipping routes. The U.S. midterm elections are also approaching, and the administration’s decision on the waiver may be viewed as a strategic move to address economic concerns while navigating the political landscape.

What it means for markets

The extension of the Jones Act waiver is likely to have a limited impact on the broader markets, but it could influence the shipping and energy sectors. The decision to narrow the scope of the waiver may provide some relief to the domestic maritime industry while ensuring the continued flow of oil and other commodities in the U.S.